Better
Business Bureau is warning renters to be on the lookout for scammers on
Craigslist and other online classifieds when searching for a home. Phony ads
for rental properties across the country are cropping up, and are specifically
aimed at stealing money from unsuspecting renters.
More
than one-third, or 36 million households in the U.S. currently rent according to
the National Low Income Housing Coalition. Many prospective
renters find homes through online classifieds. Sadly, some people who think
they have found the perfect home online are being set up by scammers.
“Online classifieds have made finding rental properties much more
convenient in recent years and millions of people have had successful transactions
on sites like Craigslist,” said Frank Whitney, MidCal BBB CEO. “Unfortunately though, what is convenient for
consumers if often just as convenient for scammers, who have also found a way
to make a quick buck by taking advantage of unsuspecting, trusting renters all
across the country.”
Renters typically fall victim to this scam after responding to an online
classified for a rental property. Victims say they were told by the supposed
landlord that they needed to wire as much as $1,400 as a deposit and then they
would receive the keys to the rental home. When the victims asked if they could
check out the property first, the landlords claimed that they were out of the
country and could not show the house.
As a result of this scam, many shocked homeowners have received
knocks at their doors by people who were planning to move into their new rental
home. Often the real homeowners have
their house up for sale – not rent - and had pictures posted online that the
scammers could steal for their bogus listings.
BBB advises renters of the following red flags to look out for:
- The deal sounds too good to be true. Scammers will
often list a rental for a very low price to lure in victims. Find out how comparable
listings are priced, and if the rental comes in suspiciously low, walk
away.
- The landlord is located elsewhere and
prefers to communicate via e-mail. Scammers might say they have just been
relocated out of the country for a job or missionary work - don’t believe
it.
- The landlord requires a substantial
deposit before handing over the keys or even showing the home. Don’t pay any
money before inspecting the home, inside and out.
- The landlord asks the renter to wire
money through wire transfer services such as Western
Union or MoneyGram. Money sent via wire transfer service
is extremely difficult to retrieve and once the scammers have picked it up;
there is little recourse—if any—for getting your money back.
For more advice you can trust from BBB on how to avoid common
scams, visit www.bbb.org.